"When complete, this sale will reduce UKAR’s balance sheet to £13bn, a 90% reduction since formation."
The portfolio comprises around 6,200 equity release mortgages from the legacy books of NRAM, B&B and Mortgage Express and is secured on residential property assets in the UK.
The latest sale means UKAR now holds around £13bn worth of assets, down from a peak of £116bn at the time of its formation in 2010.
The last major sale, in April this year, saw UKAR sell two separate portfolios of buy-to-let and residential mortgages to an investor group led by Barclays Bank for a total of £5.3bn.
Ian Hares, chief executive officer of UKAR, commented: “This is another step in the reduction and simplification of our balance sheet. When complete, this sale will reduce UKAR’s balance sheet to £13bn, a 90% reduction since formation.
"The transaction delivers against our overarching objective to dispose of assets which protect and maximise value for the taxpayer whilst treating customers fairly.”
